Loyalty Scheme in the Airline Sector Research Proposal

Loyalty Scheme in the Airline Sector - Research Proposal Example Today, over one million people are enrolled in loyalty programs to receive free upgrades, travels, and favorable treatment in return for being potential or frequent clients. Indeed, loyalty schemes have been a powerful tool to convert first-time clients to frequent and potential clients. In the airline industry, customer loyalty schemes seek to retain and acquire clients, boost customer spending habits, and boost the purchase of additional goods and services. Additionally, the Corporate Social Responsibility (CSR) program has promoted growth in this industry. CSR programs have increased growth and profitability in the sense that, companies have embraced the fact that they have an ethical and moral obligation in addition to their actual roles of attaining profits and complying with laws and regulations. With this, this pamphlet seeks to discuss how loyalty scheme and CSR has operated in the airline industry and affected business and other stakeholders. In the 21st century, successful airlines companies have integrated loyalty schemes to address and boost customer relationship and interactions. This strategy has enabled most companies to develop marketing and promotion campaigns that augment growth and profitability (Li-Wei & Chung-Yu 2012, p40). Loyalty schemes are an effective way to boost customer-retention levels. By increasing customer retention, the industry has grown tremendously. As the business world becomes competitive, the industry has recognized the need to reward the most valued customers. As a result, this has enhanced profitability and converted new clients to potential and frequent clients. Â  The industry has implemented various programs such as discount, rebate, and points program. Often, consumers receive instant discounts when shopping, and in turn, this increases their spending habits. Discount programs create a platform where consumers enjoy favorable prices and impact the industry’s growth. Rebate prog rams have played a significant role in increasing consumers’ spending. Basically, consumers accrue benefits from their purchases and receive their profit after a given span of time. This increases consumers’ spending in that, many accumulate financial benefits from the company’s programs. Points programs have augmented growth in the industry. Often, consumers obtain points from buying goods and services and thereafter they obtain discounted or free goods and services. In so doing, this increases sales and revenues and retain potential and frequent clients.